Eroding market share hits Antena 3

Profits drop 31% since last year

By EMILIANO DE PABLOS, JOHN HOPEWELL

MADRID -- Net profits at Antena 3 TV, Spain's second highest rated commercial broadcaster, tumbled 31% last year to e195.8 million ($286.6 million), eroded by falling market share and the costs of tying down European Champions League soccer.

That said, Antena 3's operating profit margin of 35.2% was still one of the highest for TV stations in Western Europe. Revenues held, 1% up at $1.29 billion, bulwarked by stable ad revs, down just 0.2% to $1.18 billion, as Antena 3 TV managed to hike up ad prices and keep a 25% share of Spain's still healthily growing total TV ad market despite a primetime audience share that tumbled from 19.1% in 2006 to 16.8% a year later.

Antena 3 TV estimated costs of owning rights to half a season of European Champions League soccer matches at $28 million. The cost explains most of a 9.3% hike in programming costs to $478.9 million.

While market share took a hefty hit, Antena 3 TV management can't be blamed for not trying new shows. The network accounted for 45 of the 113 show launches last year, and eight of the top 20 new shows, led by boarding- school suspense series "El internado," which average a 25.8% share  and 4.6 million new viewers.

The trouble for Antena 3 was that primetime remains largely dominated by holdover skeins, whether homegrown -- Telecinco's sitcom "Aida," drama "Central Hospital" or RTVE's "Remember When" -- or foreign, such as "CSI."